Evergreen Lease laws
At the beginning to the Balboa Capital complaint, Leasing News began researching not only the laws, but asking readers about the statement made by the Balboa Capital spokesman: “The point being, it exists in the lease financing marketplace and is more wide spread than you may be aware.” Readers told us something quite different about the ethics and their attitude toward the practice: From a prominent California attorney: Rhode Island: section 6-13-14 of the Rhode Island statutes restricts renewal clauses in personal property leases. This is from a major bank senior attorney: "New York's General Obligations Law Section 5-901 prohibits any automatic renewal of a lease for a term greater than one month unless the lessor gives the lessee written notice of the existence of such renewal provision at least 15 days and not more than 30 days prior to the time that the lessee is required to give notice under the lease. Illinois has a similar statute (815 ILC 601 Sec 10). However the Illinois statute does not apply to “business to business” leases, while the New York statute applies to all leases. "Also, I believe that the proposed Utah statute that would have prohibited evergreen clauses was not passed." Coincidently a story of the “end of lease” issue regarding a Utah leasing company appeared in a local newspaper. The first was sent to us by Mark Haycock, Regional Sales Manager, of Zions Credit Corporation, Salt Lake City, Utah ( we also received from others, but Mr. Haycock was the first:) http://leasingnews.org/PDF/desert_news.pdf * Declaration: Christopher Menkin was employed by Andrew G. Deiss of Jones, Waldo, Holbrook & McDonough, Salt Lake City, Utah as an "Expert Witness" in the SOS Staffing in this article and specifically makes no comment. Readers on Evergreen leases:
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